Delhi: Regulator turns down discoms power tariff-hike plan

The Delhi power regulator has turned down a request by the distribution companies to hike power tariffs in the Capital, a day before the Aam Aadmi Party (AAP) chief Arvind Kejriwal takes oath as chief minister. This is probably the first time that a claim by the distribution companies has been turned down.

Distribution companies BSES Rajdhani Power Limited (BRPL), BSES Yamuna Power Limited (BYPL) and Tata Power Delhi Distribution Limited had sought the hike as power purchase cost adjustment (PPAC) which would have been effective for the quarter of January to March 2014.

This increase was sought to cover the increased expenses incurred by the companies from July 1 to September 30, 2013, and is done every quarter. While BYPL had asked for a steep seven per cent hike, BRPL had sought a 3.5 per cent hike, TPDDL had asked for two per cent hike.

“There is a formula to work out PPAC, which was approved in the tariff order announced in August. After studying their claims and verifying them, we found that there was no need for an increase as they have not incurred additional cost over what has been allowed to them,” said PD Sudhakar, chairman of the Delhi Electricity Regulatory Board (DERC).

The power tariffs were last revised for the quarter of May to July when the power regulator had approved a 3 per cent hike for TPDDL, and a 4.5 per cent hike for areas under BRPL and BYPL.

AAP’s election manifesto says that the party will slash power tariff in the Capital by 50%. The party, set to form the government in Delhi, has also promised to conduct audits of the distribution companies.

A possible fallout of the political changes in Delhi was witnessed recently when TPDDL, which supplies electricity to north Delhi, submitted its annual revenue requirement (ARR) to DERC and didn’t seek a hike. “They have left it on us to decide. They submitted their papers giving out financial details and have admitted that there is a shortfall,” said a senior official. BRPL and BYPL are yet to submit the ARR.